1
Please refer to important disclosures at the end of this report
1
1
V-Guard Industries Limited (V-Guard) is an India-based company engaged
in manufacturing, trading and selling of electronic products. V-Guard has
been a dominant player in the southern markets and continues to make
significant investments to increase its distribution network across the country
with an aim to become a pan-India player. The next level of topline growth
would come from expansion in non-south markets and capacity additions. V-
Guard is not only diversifying its product portfolio but also enhancing its
dealer network across India. V-Guard works on an asset light model and
outsources more than 60% of its production. It has turned into a net cash
company with an improvement in the working capital cycle. This would help
maintain higher return ratios. With addition of new capacity and dealers
across India coupled with launch of premium products it would help in
generating higher revenue. The management has guided that the company
is confident of achieving 15% CAGR over the next few years. The company
has reduced its debt and is almost debt free. The company has reported a
topline and bottomline growth of 17% & 24% over FY12-17.The cashflows
has improved from 89cr in FY12 to 119cr in FY17. The Company has a
good return on equity (ROE) track record over last 3 Years ROE 25.21% and
has been maintaining a healthy dividend payout of 19.23% over the last 5
years.Hence BUY.
BUY
CMP `238
1.3
Reuters Code
VGUA.NS
VGRD:IN
1
BSE Sensex
36,140
Nifty
11,084
Face Value (`)
Elect.Equip
Market Cap (` cr)
9,860
52 Week High / Low
251/128.31
Avg. Daily Volume
553,897
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
V-Guard Industries Ltd
Others |Elect.Equip
Jan 23, 2018
2
V-Guard|Elect.Equip
June 5, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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1. Financial interest of research analyst or Angel or his Associate or his relative No
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Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)